The South African Municipal Workers Union (SAMWU) has accused the National Treasury of failing to provide sustainable funding
Image: Doctor Ngcobo / Independent Newspapers
The South African Municipal Workers Union (SAMWU) has accused the National Treasury of failing to provide sustainable funding for municipalities amid the ongoing salary crisis affecting municipal workers in the country.
Last week, the union revealed that workers in several municipalities, including Umzinyathi (KwaZulu-Natal), Thembelihle (Northern Cape), Keis (Northern Cape), Mamusa (North West), Mafube (Free State), and Kopanong (Free State), will not receive their salaries on time.
The National Treasury has been grappling with financial challenges for several years, with Finance Minister Enoch Godongwana acknowledging that the government is struggling to fund frontline services.
To alleviate the financial strain, Godongwana has proposed increasing the VAT rate by 0.5 percentage points in both 2025 and 2026, bringing the rate to 16% by the 2026/2027 fiscal year.
However, the proposal has faced opposition from various political parties and civil society organisations, who argue that a VAT increase would impose additional financial burdens on ordinary South Africans, particularly the poor.
Thabang Tseuoa, SAMWU’s provincial secretary in the Free State, criticised the National Treasury, stating that the management of the equitable share does little to help municipalities.
"The way the equitable share is structured does not assist municipalities. We also face other issues, such as poor management and a lack of financial oversight, which further affect these municipalities.
“These are poor municipalities that cannot raise funds from their communities, and there is no substantial assistance coming from the government. Departments like the Treasury are not providing enough support.” Tseuoa said.
A report by Auditor-General Tsakani Maluleke last year revealed that municipalities across the country are struggling with governance, with only 34 out of the country's 257 municipalities receiving clean audits.
mthobisi.nozulela@iol.co.za
IOL Business
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